Setting a good example for your teen to follow is key to helping them learn to be responsible with money.
Purposeful lessons and thoughtful role modeling will instill your teen with lifelong financial skills.
Parents should aim to teach their teenagers the fundamentals of earning, saving, budgeting, and managing credit.
You should also help your teen differentiate between wants and needs, and enrich their financial literacy through educational apps and websites.
Managing money doesn’t come intuitively. It’s learned by watching others do it and from first-hand experience. How parents talk about money and the choices they make with it send powerful messages to teenagers.
However, watching parents make good decisions isn’t enough. Teens want responsibility, and they want to be involved. Introducing purposeful discussions and expectations about money will launch your teen into adulthood with the experience and knowledge they need to protect their finances and avoid costly mistakes.
10 ways to teach teens to be financially responsible adults
Whether your teen is managing money from a job or budgeting an allowance, developing good habits will help them make good decisions once they’re on their own. Here are ten hands-on ways you can help get them started:
1. Earning money
Before your teen can manage money, they need to earn money. It can begin at home or with a first job. Consider paying your teen for doing extra housework. Encourage them to do yard work or pet care for neighbors. If they’re old enough, guide them into a part-time job. There’s a wide range of jobs available for teenagers, from internships to camp counselors, babysitters, and restaurant workers.
Once they’re earning, have your teen divide their money into dedicated amounts for saving, giving, and spending. The Consumer Financial Protection Bureau (CFPB) recommends saving at least 10% of each paycheck and teaching teens about …read more
Source:: Business Insider